Pennington County approves letter of intent to sell downtown administration building to Elevate Rapid City
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Summary
The commission authorized a letter of intent for Elevate Rapid City to purchase the county's 14 E Saint Joseph Street building and begin due diligence, with Elevate and the School of Mines planning a downtown innovation corridor; a formal purchase agreement and closing remain subject to further approvals and 45–60 business days of drafting and due diligence.
Pennington County commissioners on Nov. 18 authorized the board chair to sign a letter of intent from Elevate Rapid City to purchase the county’s downtown administration building at 14 East Saint Joseph Street and to begin the process of drafting a purchase-and-sale agreement.
Davis Purcell, the county’s director of buildings and grounds, outlined the LOI terms: Elevate would place $25,000 in earnest money with the title company, the county would draft a formal purchase agreement within 45–60 business days, and Elevate would have a 60‑day due‑diligence period for inspections, title review and environmental work before closing could occur roughly 30 days later. Purcell said the county would not move out immediately if the sale proceeds; moving and remodel work would be coordinated and scheduled in 2026.
Tom Johnson, CEO of Golden Gate Rapid City and an Elevate partner, described the buyer’s intent to integrate the property into a downtown innovation corridor linked to the South Dakota School of Mines and Technology and said Elevate hopes to attract tech and research firms and create jobs. "We're hoping 4 to 500, at least," Johnson said of potential jobs in the corridor, and he said talks are underway with the governor’s office of economic development and federal representatives.
Commissioners discussed valuation and community benefit; Commissioner Durr noted the county’s appraised or cost basis and welcomed a deal that recovers county expense. The motion to approve the LOI and authorize the chair’s signature passed by voice vote.
What's next: Staff (Buildings & Grounds and the state's attorney) will negotiate a formal purchase agreement and return to the commission for final approval of terms and closing. The LOI authorizes Elevate's due diligence but does not transfer title.
Provenance: Presentation and LOI approval (Davis Purcell, SEG 1716–1744; Tom Johnson, SEG 1779–1816; motion and vote, SEG 1822–1903).